Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

German business morale shakes off coronavirus crisis to hit 2-1/2 year high

06/24/2021 | 05:25am EDT
FILE PHOTO: People enjoy warm temperatures in Berlin

BERLIN (Reuters) -German business morale rose by more than expected in June and hit its highest level since November 2018 on companies' surging optimism about the second half of the year in Europe's largest economy, a survey showed on Thursday.

The Ifo institute said its business climate index rose to 101.8 from 99.2 in May. A Reuters poll of analysts had pointed to a June reading of 100.6.

"The German economy is shaking off the coronavirus crisis," Ifo President Clemens Fuest said in a statement.

Chancellor Angela Merkel said on Wednesday Germany was on the verge of a strong economic upswing, adding that Bundesbank chief Jens Weidmann had given a very positive assessment of the economic outlook to the cabinet.

Germany's central bank raised its growth forecasts earlier this month and now expects the economy to reach pre-pandemic levels as soon as next quarter and grow by 3.7% this year and 5.2% next year.

German authorities have loosened COVID-19 restrictions in light of falling infections and higher vaccination numbers.

The bounce-back from lockdown is driving the largest upward leap in retail conditions seen since German reunification more than three decades ago, Ifo economist Klaus Wohlrabe said.

Despite concerns about supply bottlenecks, Volkswagen said on Tuesday a global chip shortage that is hitting carmakers will not impact its forecasts for 2021 operating profit margins.

"Fortunately, been we have able to notably limit the negative impact on our customers and thus on delivery figures so far, for example by selling off inventories and other measures," a spokesperson for the company said.

Ifo's Wohlrabe said the economy would grow by 1.3% in the second quarter, and by a further 3.6% in the following quarter, with bottlenecks and rising input costs pushing many companies to raise prices.

Even in hospitality, among the sectors worst-hit by lockdown, where conditions were still bad, there was growing optimism, he added.

Thomas Gitzel, economist at VP Bank Group, said the economy is "currently in excellent shape".

"However, the pandemic is still not completely eliminated as an economic stumbling block. The Delta variant worries not only virologists but also economists," he added.

The share of COVID-19 infections caused by the more easily transmitted Delta variant of the coronavirus has doubled in Germany in a week and is likely to gain more traction over other variants, the Robert Koch Institute public health agency said on Wednesday.

(Writing by Paul CarrelEditing by Caroline Copley and Toby Chopra)

By Paul Carrel


© Reuters 2021
Latest news "Economy & Forex"
04:58pU.S. CDC Reports Total Deaths Of 610,873 Due To Coronavirus As Of July 31
RE
04:58pU.s. cdc reports total novel coronavirus cases of 34,926,462 as of july 31 vs 34,818,278 in previous report on july 30
RE
04:57pU.s. cdc reports total deaths of 610,873 due to coronavirus as of july 31 vs 609,853 in previous report on july 30
RE
04:55pU.s. cdc says 164,446,964 individuals have been fully vaccinated against covid-19 as of july 31 vs 164,184,080 individuals as of july 30
RE
04:54pPrivate equity firm CD&R readies Morrisons counter-bid - report
RE
04:54pU.s. cdc says 190,982,149 individuals have received at least one dose of covid-19 vaccine as of july 31 vs 190,509,183 individuals as of july 30
RE
04:53pU.s. cdc says administered 345,640,466 doses of covid-19 vaccine as of july 31 vs 344,071,595 doses administered as of july 30
RE
04:52pU.s. cdc says delivered 400,675,525 doses of covid-19 vaccine as of july 31 vs 399,090,105 doses delivered as of july 30
RE
04:42pBSTDB BLACK SEA TRADE AND DEVELOPMENT BANK : Invests EUR 35 million in Upgrading of Bulgarian Energy Holding
PU
04:29pU.S. COVID-19 residential eviction ban set to expire at midnight
RE
Latest news "Economy & Forex"